Consider a corporate bond with 18 years to maturity, $1,000 par value, paying a coupon rate of 8% and currently selling for $1151 in the secondary market. The bond may be “called two years from today at a price of $1,040., , A. Calculate the yield to maturity (YTM) for this bond? ,, B. Is it selling at a discount, at a premium, or at par?,, C. Calculate the yield to call (YTC)? ,, D. If you purchased this bond, explain which you expect to receive, YTM or YTC?,,
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